Transcript of "Lecture St Gallen University - Future of online Advertising in the Social Web - How Facebook, Google and co change the internet landscape"
The Future of Online Marketing in the Social WebMichael Altendorf12th, Dec 2011Lecture / University St Gallen
Lecture - University St Gallen Agenda 1. About Adtelligence 2. Product Portfolio 3. Market Overview 4. The Social Web 5. Social Commerce 6. Social Data are key 7. Privacy Issues 8. Showcases 9. Questions & Answers /Discussion 10. Further Readings
ADTELLIGENCE providesAgencies, Publishers and eCommerce withleading solutions for targeting andanalytics
About Us Founded in 2008 Awards 2010 & 2011 Located in Mannheim, Düsseldorf, London Team of 25+ tech- and media experts from e.g. SAP, Google, T-Systems and IBM 1 of 10 Facebook preferred developer consultants in Connected to e.g. Europe Only certified Facebook Advertising provider (API) Performance: Manage terabytes of data Deliver billions of impressions Cloud based solution Simple & efficient scalability Highest security and redundancy
Online Marketing, eCommerce and SocialThe markets can be considered „crowded“ but with hypergrowthSource: http://www.slideshare.net/tkawaja/presentations
The Market of Tomorrow The market is consolidating 2012 is the year of M&A Single tools will become platforms Older technologies will disappear
The online Marketing Value Chain $5.00 CPM $5.00 ($0.50) (CPM) ($2.00) ($0.25) ($0.35) ($1.80) ($0.10) $0.00 Advertisers Agencies Ad Network Data Ad Ad Serving/ Publishers Provider Exchange Rich Media
Even in the beginningthe web was about people Communication Services started the digital revolution in the 90ies Mobile Data/internet flatrate will change life of many people around the world The personalized web comes close to the first vision of the internet Communication is everywhere, even your new TV will have Skype Source: Computer History Museum
The Social Web market is already No 1 »The Social Web may still be in its early phases, but it is likely to transform the fundamental businesses of the Internet far more rapidly than the » incumbents anticipate. (Accel Ventures – The rise of the social web, 2009)
Facebook‘s revenues increase fast "Its early days are unproven fully, but Facebook believes thats the holy grail," observed analysis Kawaja.
And Facebook‘s valuation increases even faster (max ~95B) Source: Techcrunch.com
Plattform vs. One Trick Pony Very hard to generate first network effects e.g. Apps with $1 each or typical digital Difficult monetization as it is indirect goods Source: Facebook HACK
The Social Web MarketTraditional Players from other markets enter and build together with new startups a new market Ad Server Social Vendors Commerce DSP‟s & The CRM Social Marketing SSP‟s Automation Web Market Web & Business Social Intelligence Analytics Social Targeting
Single Sign-On & Facebook Connect SOCIAL WEB YOUR WEBSITE
Single Sign-On Technologies / Facebook Connect rules the game Which Profile Data are available?
What kind of data is available? Consumer Info Data Example Mobile Internet TV Interests - Intent Context GPS Location Store or street location (Main & 1st street) IP address 127.159.456.37 Concurrent media use Net & TV, Mobile & TV, etc Content Mazda review Daypart Lunch Breakfast or weekend shopping Zip code 11932 Calls placed (to who, frequency) Calls to order lunch from deli daily Family plans Family of five, etc Usage patterns (when & where) Uses phone in the car, Internet on the road Type of handset or upgrade Bought an iPhone early, Brand buyer, not price # of e-mails/texts sent/received Sends ~xx texts/day indicates age/engagement Coupon activity Uses coupons for consumer package goods Location patterns Goes to shopping, mall, or restaurant Apps/downloads Downloaded “mint‟ app Purchases Bought TV from Best Buy.com Shopping cart Considered TV from Amazon.com Content viewing history Frequent News viewer, Recent Auto ShopperIdentity Ads seen/clicked on Clicked on mortgage ad YP.com searches Sought: “”Plumber in Portland: Other searches Searched: for “TV reviews”, Used Cars, etc # of unique people called Frequent callers are influencers Device owned Android owner Psychographic segment “Urban Dweller” Registration (address, etc.) Name, address, etcSource: Greg Stuart firstname.lastname@example.org /Slideshare Confidential 28 28
Amazon: Social Shopping with Facebook ConnectSOCIAL SHOPPINGAfter Connecting with Facebook, Amazon gives yourecommendations based on your and your friends publicinformation.For Amazon, knowing which of their Customers knowing eachother would be an extremely powerfull marketing tool.For the Users it can be very helpful to know each othersinterests, e.g. for buying birthday presents or borrow DVDswhich are already bought by friends.
ProductHow it works1. Data is captured on SNS2. Targeting in real time3. Matching with the right ad4. Marketing Intelligence to prove the result and recommend audience optimization
AdtelligenceCan use all data! Shop Social baskets networks CRM Data data exchanges Adtelligence is 100% compliant with German privacy regulations
“If I had to guess, social commerce is the nextarea to really blow up”Mark Zuckerberg (Facebook))“The potential for social commerce today is“inﬁnite”… Every eCommerce site will have toadapt”Bing Gordon (Kleiner Perkins)
Vision for 2012Reach 2.5 billion people worldwide with one platform 800 Mio users 120 Bn page views per month 150 Mio users 130 Mio users 400 Mio users 65 Mio users Agencies 600 Mio users 180 Mio users 120 Mio users
ADTELLIGENCE build for Social CommerceData is the new business model Advertise Personalize Analyze Automated Optimization on KPI„s Social Audience Reporting Business Enrich Targeting Analytics Optimization Intelligence CRM Data
Leveraging the Social GraphShopping is a social Experience Social Single Graph Sign-On
Privacy – What is needed for the personalized web? 1. Personal Data Bullet 1 2. Demographics: Age, Job, Joblevel etc. 3. Interests like Music, Movies, Books, Sports or even Quotations 4. Geo Data like City, Holiday Destination Bullet 2 5. Friends & Social Graph 6. Acitivities in Groups 7. Wall and Comments Bullet 3 8. Fotos 9. Specials e.g. Blogs or Videopodcasts after Content OK ( Gmail) 1. Further use of optional User Data only under the terms of data Protection 2. Beside the Data Protection you should respect the State of the User
Conclusion: Transparency is keyNew opportunities for online advertising in social networks offer many benefits, both for platform operators and for users. Amazon andApple, for example, make much use of them. This is precisely why open communication is of particular importance when dealing with userdata. Transparency leads to lasting acceptance.Facebook and Google are dealing primarily with negative headlines in the media because they don‟t tell their users what they are doing.Three scenarios are described:
Facebook Login or Sign upFor all WebsitesSocial PersonalizationEnginePersonlized Landing Pagesbased on your facebook profile
For eCommerceInterest GraphPersonalizationWhat are your friends buying?
For PublishersSocial GraphPersonalizationGet Recommended News byyour social circle
ADTELLIGENCE - For a higher ROI ConversionsNew Customers 328% 191% 221% 146% A/B Testing 114% Time:~12 weeks Live data from one of our German eCommerce clients
Live ExamplesCONVERGENCE+ mobile & socialwww.rnloewen.deCONVERT+ Social Personalizationwww.europapark.deFacebook Social Searchwww.quirk.liSocial AnalyticsRegister on www.adtelligence.de for Live demo
Opportunities in many areas!The new market: „Social Web“The Market Segment The Product The Business ModelSocial Graph Filtered web through social graph Cost per data, free and indirect via adsInterest Graph Personalized web Advertising, AffiliateLocation Data Couponing Affiliate Augmented Reality Affiliate Yellow Pages 2.0 Ads, couponing, affiliateReal Time Bidding Platforms Transaction based / middle men Ad Exchanges Transaction based / middle menData in General Data Crawlers / Cookie Dropping / Behavioral Sell to Data Exchange, Technology per License Ads Data Exchanges Marketplace, Transaction based Semantic and real time user profile Targeting Technology
What to look for in the future Data Driven Advertising Real Time Personalized Content Social Commerce Location Awareness Mobile everywhere
Further ReadingsDie Zukunft des online Marketings im Social Webhttp://www.slideshare.net/michaelaltendorf/adtelligence-social-targeting-die- The Social Webzukunftderonlinewerbungimsocialwebjanuar2011 http://www.accel.com/download.php?file_id=80Datenschutz im Social Webhttp://www.slideshare.net/Adtelligence/adtelligence-social- The Future of the Social Web: In Five Erasmediaadvertisingdatenschutzimsocialweb14062010-4505594 http://www.web-strategist.com/blog/2009/04/27/future-of-the-social-web/The New Information Age Social commerce - the trends to watchhttp://techcrunch.com/2011/04/10/the-new-information-age/ http://www.utalkmarketing.com/pages/Article.aspx?ArticleID=20656&Title=Social_c mmerce_-_the_trends_to_watchAd Networks Keynotehttp://www.slideshare.net/tkawaja/terence-kawajas-iab-networks-and-exchanges-keynote Social Commerce: Personalized and Collaborative Shopping Experiences http://www.emarketer.com/Report.aspx?code=emarketer_2000744The Personalized Webhttp://www.youtube.com/watch?v=35fNDzUe0vEScienceification of Mediawww.slideshare.net/tkawaja/the-scienceification-of-mediaThe Social Media Explosionhttp://www.gpbullhound.com/researchpdf/GPBullhound%20Report%20-%20The%20Social%20Media%20Explosion%20-%20August%202010.pdf